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2023 (4) TMI 616 - AT - Income TaxDisallowance of interest expenditure claimed by the assessee - DR submitted that the assessee has not proved from the books of accounts that it has availed loan from M/s Adarsh Credit Co-operative Society Ltd.- HELD THAT:- This issue could be resolved by examining the books of accounts. It is also the submission of the AR that the loan taken from above society has been duly recorded in the books of accounts and the same has been grouped under the head loan from banks while preparing balance-sheet. Further, the assessee seeks an opportunity to prove its claim. Accordingly, this issue may be restored to the file of the Assessing Officer in both the years for an examining the books of accounts of the assessee in order to satisfy himself that the assessee has actually availed loan from said aforesaid society - We also direct the assessee to produce the books of accounts and also furnish any other information and explanations that may be called for by the AO in this regard. Decided in favour of assessee for statistical purposes. Disallowance of depreciation claim - assessee has not carried out any business activity during the year relevant - AR submitted that assets were put to use in the earlier years and the depreciation was also allowed in those years - HELD THAT:- In the instant case, though the tax authorities have stated that the assessee has not started business activities in the subsequent years also, it was not shown that the assessee has completely abandoned the business of generation of electricity. The case of the assessee that the assets are kept ready for use and it was expecting only favourable market situation. It is also submitted that the assessee has maintained its business establishment and was generating other types of income, besides servicing loan taken for business purposes. We are of the view that there is no reason to disallow the depreciation claimed by the assessee. Decided in favour of assessee.
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